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Discover® Open Road Card

• 0% Intro APR*
• Save at the pump and everywhere else.*
• 5% Cashback Bonus® on gas and auto maintenance purchases
• 5% to 20% Cashback Bonus at top online retailers*
• Up to 1% Cashback Bonus on all other purchases
• Unlimited cash rewards
• Increase, even double, the value of your rewards when you redeem for gift cards from our 100 Cashback Bonus Partners

Issuer:  Discover

APR:   0.00%

Introductory Period: Six months

APR After Introductory Period:  10.99% variable on purchases and 23.99% fixed on cash advances.

Annual Fee: $0

Credit Line Possible: The maximum if $50,000 and the minimum is $5,000.

Insurance included:  You get up to $500,000 in travel accident insurance, auto rental insurance, and various fraud and security protection services.

Financing Configuration –Finance charges for the Discover® Open Road Card are calculated using the "Two Cycles Average Daily Balance" method, which is a more costly method if you plan carry a balance compared to the "Average Daily Balance" method used by most card issuers.

Grace Period – You have twenty-five days during which you do not have to pay interest on purchases

The Best Thing About It – There are several bonus, cashback and rebate programs associated with this one card.

The Worst Thing About It – The interest is calculated in the expensive “Two Cycles Average Daily Balance” manner.

Credit Rating Needed For Acceptance – Excellent.

Who Is It For?

 

The Discover® Open Road Card is for those who want to earn cash rewards for gas and automotive related spending and that want a card with generous insurance coverage.

The Benefits

The unlimited cash rewards are generous and never expire. Through the reward program, cardholders earn a full 5% in cash rebates for gas and auto maintenance purchases, up to 1% for general purchases, and .25% for purchases made at select warehouse clubs and discount stores.

You can also receive a direct rebate. This card also offers a variable rebate on gas and auto maintenance purchases. Those who spend up to $1,200 will receive a full 5% rebate, between $1,200 and $1,500 will receive a .25% rebate, between $1,500 and $3,000 will receive a .5% rebate, and over $3,000 will receive a 1% rebate

There is also the added bonus of a double rebate program. If you buy from Discover’s online partners you can earn up to a double Cashback Bonus® for redeeming their rebates.

There is no yearly limit on the amount of rebates that can be earned. Rebates do not expire as long as the account is active within a 36-month period.

There is generous travel accident insurance. Unlike many cards this one offers up to $500,000 in travel accident insurance.

You can set your own payment due dates. This can help you pay on time.

There is no fees on balance transfers.  There are a lot of fees associated with this card but none for balance transfers.

The card can suit your personal taste. You can select from several card designs that are offered.

The Drawbacks

 

There is a hitch when it comes to the rebates: The highest rebate offered will not apply to all purchases made with the credit card. In this case, 1% will only be applied to those purchases made after the cardholder spends over $3,000 in one year, so the overall cash rebate earned will be less than 1%, depending on the amount spent. For instance, if the cardholder were to spend $4,000, only $1,000 of this amount would be applied towards the 1% rebate.

There is a high interest rate for taking out cash advances.  There is a charge of 20.99% fixed rate for each cash advance transaction.

Monthly payments are applied to purchases first until they are paid off and then to purchases.  This can get very expensive if you use it to take out cash, as the interest rate is high.

A short grace period. Many credit cards don’t collect interest on purchases until thirty days after purchase. The grace period for the Discover® Open Road Card is twenty-five days.

The introductory rate is not guaranteed. If you make a late payment on any bill, not just your credit card bill, your introductory rate can be replaced with the prime rate.

There are lots of hidden fees. The fees for this card can add up and make it seem like you are paying an annual fee anyway. In fact the cash advance fee and balance transfer fees are almost double of what you would pay on another card.

Fees To Watch Out For

 

Late payment fee:  $15 on balances up to $50; $39 on balances over $500

Over The Limit fee: $15 on balances up to $500; $39 on balances over $500

Cash advance Fee: 3%, $5 minimum

Balance Transfer Fee: 3%, $5 minimum, $50 maximum

Balance Transfers: 3%, $10 minimum, $50 maximum (with this introductory offer)

To Summarize –

Discover® Open Road Card is a good card for people those who plan to spend up to $1,200 a year on gas and auto maintenance purchases (to earn the full 5% cash rebate), plan to use their Cashback Bonus® award at participating retailers (to earn double cash rebates), and plan to pay in full each month to avoid the expensive finance charges.

Intro APR	Intro APR Period	Regular APR	Annual Fee	Balance Transfers	Credit Needed
0%	6 months	10.99%	None	Yes	Excellent Credit